Powell is being sued, key Republican lawmakers turn against him: I will vote against it, Trump should not think about nominating a new Federal Reserve chairman!

After Federal Reserve Chairman Jerome Powell accused the Department of Justice of initiating a grand jury investigation to pressure the central bank, Trump immediately faced a bipartisan backlash, and his plan to nominate a new Fed chairman encountered significant obstacles.

According to Bloomberg on Monday, Republican Senator and key member of the Banking Committee Thom Tillis issued a statement on Sunday, clearly stating his opposition to any Fed nominee proposed by Trump, including the soon-to-be-vacant position of Fed chairman, until the DOJ investigation is thoroughly resolved. Tillis also serves on the Judiciary Committee, which has oversight over the DOJ.

In a written and video statement released on Sunday night, Powell stated that the investigation is nominally related to the Fed headquarters renovation issues mentioned in his June congressional testimony, but "should be understood in the broader context of government threats and ongoing pressure." He warned that this concerns whether the Fed can continue to set interest rate policy based on evidence and economic conditions or yield to political pressure and intimidation.

Democratic lawmakers quickly followed up with condemnation, with senior Democratic Banking Committee member Elizabeth Warren stating that Trump "abuses the law like a dictator," calling for the Senate to reject any Fed nominee proposed by Trump. Senate Democratic Leader Chuck Schumer warned that undermining the Fed's independence would threaten the economy.

Intensifying Divisions Within the Republican Party

Tillis's opposition constitutes a substantial obstacle to Trump's plan to reshape the Fed. The current bipartisan seat ratio on the Senate Banking Committee is 13 to 11, and Tillis's opposition vote is likely to lead to a deadlock on any Fed nominee at the committee level. According to current Senate rules, forcing a controversial nomination through the committee requires 60 votes in support.

Tillis stated in his announcement: "If there were any doubts before about whether advisors within the Trump administration are actively pushing to end the Fed's independence, there should be no doubt now. What is now in question is the independence and credibility of the DOJ." This Republican lawmaker, who is not running for re-election, has taken a hardline stance, showing that he is not constrained by electoral pressures.

According to NBC, Trump denied knowledge of the DOJ's investigation into the central bank during an interview. However, Powell explicitly pointed out that this move should be understood in connection with government threats and ongoing pressure, raising the question of whether the Fed can continue to set interest rates based on economic conditions or will be swayed by political pressure and intimidation.

Trump's Pressure on the Fed Escalates

For months, Trump has clearly expressed his desire for the Fed to quickly and significantly cut interest rates. Various government departments have launched attacks on current Fed governors, including Biden-appointed Lisa Cook and current Chairman Powell.

The DOJ investigation is nominally targeting Powell's testimony in June regarding the Fed headquarters renovation project. However, Powell explicitly characterized the investigation as a means of political pressure rather than a normal legal procedure.

Florida Republican Representative Anna Paulina Luna had previously called for an investigation into Powell's statements about the renovation project in Congress, and she praised the investigation on social media platform X, writing: "Unelected bureaucrats cannot be granted immunity."

The White House Faces Multiple Setbacks in Congress

Tillis's quick rebuttal came as Trump recently faced a series of defections from Republican lawmakers in Congress. Last week, the House voted to extend healthcare subsidies from the Biden era, while the Senate advanced legislation to terminate military actions against Venezuela.

According to a report by Global Network citing NBC, just hours after the Senate voted to condemn the White House's current and future actions in Venezuela, Trump "angrily" called five Republican senators who voted in favor. These five include Rand Paul, Josh Hawley, Lisa Murkowski, Susan Collins, and Todd Young. Sources revealed that Trump threatened these lawmakers with primary challenges, stating he would "take them down."

On the 8th, the Senate passed a procedural vote with 52 votes in favor and 47 against, advancing a bipartisan resolution to restrict Trump's military actions against Venezuela without congressional authorization. A formal vote in the Senate is expected this week